Month: May 2013

Farm workers get paid a little bit more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Farm owners have responded to fears of a labour shortage by actually raising wages by a little bit.

The Department of Agriculture reports:

Farm operators paid their hired workers an average wage of USD 11.91 per hour during the April 2013 reference week, up 4 percent from a year earlier. Field workers received an average of USD 10.92 per hour, up 4 percent from a year earlier. Livestock workers earned USD 11.46, up 51 cents. The field and livestock worker combined wage rate, at USD 11.10 per hour, was up 48 cents from a year earlier. Hired laborers worked an average of 40.3 hours during the April 2013 reference week, compared with 39.2 hours a year earlier.

Maybe someone should tell the Partnership for a New American Economy about this . It`s just crazy enough that it may work!

By the way, don`t worry about this bankrupting the great American farmer. Farm profits are expected to rise by more than 13 percent this year-to more than double what they were as recently as 2009.

Follow me on Twitter @Carney

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reforms critical in ‘Abenomics’: World Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Japanese Prime Minister Shinzo Abe`s radical economic policies may have instilled confidence among investors, but structural reforms will be key going forward, according to the World Bank.

Sri Mulyani Indrawati, managing director at World Bank said while “Abenomics” is bold and a change of policy from the past thus far, a “third arrow” from Abe will be equally important.

Also read: Weak yen a help for Japan, but headache elsewhere

“[The government needs] to justify what you are doing by supporting your structural policies, in this case, and that will justify more or less what you are doing on this macro-policy front,” Indrawati told CNBC in Japan.

Markets are awaiting Abe`s “third arrow” next month, which is expected to be a broad overhaul of the economy with structural reforms to remove barriers to competition and investment.

It will be the third part of “Abenomics” after easing monetary policy and increasing fiscal spending, which has led the benchmark stock index Nikkei 225 to surge 60 percent since mid-November, while the yen has weakened 25 percent.

“It is not just about defending [your policies] globally. But for the government, it needs to anchor the confidence that it has already created,” Indrawati said.
She added that structural reforms are going to be the most difficult to implement on many different fronts.

“That is going to be the hardest politically, economically and socially, because it really hits the different interest groups in this economy,” She said.

When asked if “Abenomics” could be viewed as just competitive devaluation unless we see structural reform in Japan, Indrawati said, “Definitely, yes.”

Japan has faced criticism for introducing policies that have weakened its currency helping to increase the competitiveness of its exports.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indians have no choice but to learn Chinese

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

It was a “botched” business deal in 2011 that prompted Mumbai-based entrepreneur Navin Thantry to learn mandarin.

Thantry had ordered 20 million rupees ($360,000) worth of polished gems like moonstones and turquoise from a Fengshui goods dealer in China with the help of an interpreter. When the consignment arrived in Mumbai, it consisted of large, rough stones instead.

The harried businessman spent the next 3-4 months getting the stones cut and polished locally that cost him almost 20 percent of the consignment value.

To make sure there was no loss in translation going forward, Thantry – who imports crystals and gemstones for his “mystic healing” business from China – decided to learn Mandarin himself. He has already spent more than 120 hours learning conversational Mandarin at Career Crafters, an institute for foreign languages in Mumbai, and has also managed to convince two of his employees to enroll for the course.

“I am targeting a turnover of $20 million in the next 3 years. An investment of $2,000 in Mandarin speaking is a small price to pay. I don`t see any country matching China`s labor or cost efficiencies,” he told CNBC.

As the world`s two most populous nations China and India work towards increasing bilateral trade, entrepreneurs like Thantry are building their future leveraging on China`s price competitiveness and manufacturing muscle.

“You name anything from electronics to footwear, textiles and even idols of Hindu deities are being imported by Indian retailers and wholesalers from China,” points out Madhav Sharma, China chief representative at Confederation of Indian Industry (CII). At the recently concluded Canton Fair, China`s largest export and import fair, Indians were the third largest buyers of China-made goods.

Trade between the two countries has grown from as low as $2.92 billion in 2000 to a record $73.9 billion in 2011 and is targeted to reach $100 billion by 2015, according to India`s Commerce Ministry. Indian businesses don`t want to lose out on this opportunity and learning Mandarin is the first step.

“When you speak the language of the person you want to do business with you give a signal that you are serious, you build trust and you build relationships ground-up,” says Harpreet Singh Puri who set up business advisory firm Business Links in Shanghai in 1999 to advise Indian companies on China strategy and cross-border investments.

Puri speaks Mandarin and advises his clients to pick up the skills if they are long on China. “A new axis of China-India trade and commercial collaboration is emerging…we have a common, shared history, which gives us more in common than either of us with the West. If we can also speak in the same language, we can be unstoppable,” he says.

According to Justdial.com, an online directory of business services, there are more than 25 centers teaching Mandarin in Mumbai and a whopping 120 such institutes in New Delhi and its suburbs.

“For the past several decades, China has systematically engineered its economy to be the factory of the world. Today no company from Apple (NASDAQ: AAPL) to a kite-maker in Mumbai can resist the low production and sourcing costs in China. That explains why Mandarin classes are becoming so popular. You want to speak the language of the people who dominate your business landscape,” points out KC Mathur who teaches mandarin at Delhi University`s Department of East Asian Studies.

In the last few years demand for Mandarin courses has exploded with more than 300 students enrolled at various colleges affiliated to Delhi University, up from a mere 30-40 less than a decade ago. “Our only constraint is lack of teachers. We have introduced an aptitude test to restrict the intake of students,” Mathur told CNBC.

In 2005 Purnima and Akshay Garg returned from China, where Akshay worked for a consulting firm, to start the Chinese Language Institute in New Delhi to tap into this pent up demand. “While trade between India and China is improving, there are just not enough Indians speaking Mandarin or Chinese speaking English. Language interpreters are therefore in huge demand,” says Purnima.

Nitin Rao, director of Career Crafters in Mumbai adds, “About 75 percent of our students are importers and traders who are doing business with China.” Since he set up shop in 2008 inquiries for Mandarin classes have quadrupled.

Between 2005 and 2010, there was a 116 percent increase in the number of business visas issued by the China Embassy in Delhi to Indians, according to an Economic Times report.

“There is a direct correlation between a country`s ascendance and its language. Now with China poised to rule the world, Mandarin is well on its way to be a world language,” says Puri.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Most popular country in the world: Revealed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Europe’s largest economy, Germany, which has been criticized for not doing enough to help struggling euro zone countries, has topped a poll as the world’s most popular country.

The survey, carried out for the BBC, polled 26,000 people in 25 countries and asked them to rate 16 countries and the European Union as a whole on whether their influence on the world was mainly positive or negative.

Germany came out on top, with 59 percent of survey participants giving it a positive rating. The country moved up three percentage points from its 2012 position. It displaced Japan, which saw its positive rating fall from 58 percent last year to 51 percent, going from first to fourth place.

The most negatively perceived country was Iran, with only 15 percent of respondents giving it a positive rating. Pakistan and North Korea also received low ratings.

Germany’s increased popularity was helped by positive reviews from people in Spain, France, Ghana and Australia. But in debt-laden Greece a majority of people polled gave Germany negative ratings.

(Read More: Even Mighty Germany Looking `Like a Mid-Table Laggard` )

The German government’s policy of tackling over indebtedness through harsh austerity measures has proven unpopular in peripheral euro zone economies.

Alastair Newton, political analyst at Japanese investment bank Nomura, said Germany`s popularity in the survey is not surprising given the alternative choices.

“There are lots of reasons why Germany is admired,” Newton said. “It is a large and important world economy, a world-class manufacturer and has a chancellor who demonstrates genuine leadership. The question also is, where else would it be? It is hardly likely to be the US, given their attitude to the Middle East, or China given Western and Japanese concerns on the country,” he added.

(Read More: Markets Take `Glass Half Full` View of Weak European GDP )

But Jennifer McKeown, European economist at research house Capital Economics, said the results of this survey would probably be different if it were euro zone-focused rather than global.

“The big difference here is that this is a worldwide survey,” she said. “I’m not sure how relevant this is as it is the perception of Germany within the euro zone that is more important.”

“Negative sentiment towards Germany in the peripheral economies is a worry, as in countries like Italy we are seeing people swaying towards parties with less focus on fiscal tightening and more on growth orientated policies,” McKeown said. “This is damaging for Germany’s proposed vision of the euro zone, where it gets more of a say in how things are run,” she added.

(Read More: EU Officials Get 3/10 for Handling of Euro Zone Crisis: Schulz )

Other countries that saw a boost ratings included the UK, which climbed to No. 3 in the table following its hosting of the 2012 Olympics.

China and India proved less popular, however. After improving for a number of years, their ratings fell sharply this year. China sank to the ninth position, with 42 percent of the respondents giving it a positive rating. India was ranked No. 12, with 35 percent of those polled saying their perception of the country was negative, while 34 percent viewed it positively.

(Read More: Outlook for China`s Economy Just Keeps Getting Worse )

Views on the European Union’s influence on the rest of the world improved slightly in 2013, after it dropped to its lowest level last year. In 2013, the EU’s rating rose one percentage point to 49 percent. However, the perception of the EU did deteriorate markedly in certain countries, including Germany itself, Canada and the US. In the UK for the first time this year, more Britons rated the EU negatively (47 percent) than positively (42 percent).

The survey was conducted for the BBC by international opinion research consultancy GlobeScan and Washington-based Program on International Policy Attitudes, through face-to-face and telephone interviews with randomly selected people.

The survey has been carried out since 2005, and the most recent one was conducted from January to March 2013.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Outlook for China’s economy just keeps getting worse

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The unexpected contraction in China’s factory activity in May has heightened the risk of a further slowdown in the second quarter, after the world’s second largest economy grew at its slowest pace in three years over January to March, said economists.

The flash HSBC Purchasing Manager’s Index (PMI) for May that was released on Thursday slipped to 49.6, falling under the key 50 level, which divides expansion from contraction, for the first since October. Last month, the final HSBC PMI stood at 50.4. The decline was driven partly by a fall in new orders – with the sub-index dropping to 49.5, the lowest reading since September.

“It is not good and it does increase the chances of a sequential slowdown in the second quarter GDP [gross domestic product]. Simply put, domestic demand this time wasn’t strong enough to counter fully the impact of still weak external demand,” Donna Kwok, greater China economist at HSBC told CNBC on Thursday.

Asian markets took a hit following the release of the data, alongside the Australian dollar which fell to a fresh 11- month low against the greenback.

Shane Oliver, chief economist at AMP Capital said the latest PMI reading is a warning that the brief upswing in the world`s second largest economy late last year has faded, adding that growth could dip below 7.5 percent this quarter from 7.7 percent in the first three months of the year.

“Momentum that had been starting to build late last year is now reversing. And a big chunk of that softness is in the manufacturing sector,” Oliver said, noting that monetary conditions may not be easy enough to support growth in the mainland at the moment.

(Read More: China Growth May Hit 9% by Mid-2014 )

Oliver, however, doesn’t expect a dramatic slowdown in growth. “PMI is still at a level which has correlated with OK growth in China. I suspect you would have to get below 40 to signal a recession in China, we’re a long way off from that,” he said.

_PAGEBREAK_

Nothing to worry?

According to Dariusz Kowalczyk, senior economist at Credit Agricole, investors shouldn`t worry too much as it is not uncommon for manufacturing PMI to be in negative territory.

“It stayed there for the first three quarters of last year, and despite that industrial production expanded,” he said.

In addition, Kowalczyk argues that there is an element of seasonality in the decline. The PMI typically falls in May, he said, noting that in the past five years, the index has fallen four times by an average of 0.7 points in May. This month, it fell 0.8 points.

(Read More: China President Takes Charge of Sweeping Economic Reform Plans )

“We are keeping our growth forecasts for 8 percent for 2013. We expect a reacceleration in growth in the second quarter as the first quarter marked the end of destocking by manufacturers.”

At 8 percent growth for 2013, Kowalczyk is among the most bullish on China’s growth prospects.

A Wall Street Journal poll of 12 banks published last week showed of the major lenders, HSBC has the highest growth forecast for China at 8.2 percent for 2013, while Societe Generale, by contrast, has the most bearish view on the economy, projecting 7.4 percent growth this year. The median forecast was 7.8 percent.

(Also Read: METALS-Copper inches up but China woes drag on demand outlook)

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan bulls unwavered by stock market rout

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A day after Japanese equities witnessed their sharpest one-day drop in more than two years, investor optimism over the outlook for the country’s stock market remains unshaken.

“The market was very right for a correction. [But] longer term there is a lot of potential in Japan. Obviously markets don’t move in a straight line,” David Dietze, president and chief investment strategist at Point View Wealth Management told CNBC on Friday.

The benchmark Nikkei 225 rebounded 3 percent at the start of trade on Friday after its 7.3 plunge on Thursday, while the Topix traded up 2.8 percent following its 6.8 percent fall a day earlier.

Strategists said the pullback was merely a “healthy correction,” noting that the uptrend is still in place.

“Realistically, we were seeing signs all along that were over bearish the Japanese yen and bullish on the Nikkei. I view this as a healthy correction in Japanese equities and the currency,” David Rodriguez, quantitative strategist at DailyFX said, referring to the fall in dollar-yen to a two-week low of 100.83 on Thursday.

Despite the market rout that was triggered by a host of factors ranging from a spike in Japanese government bond (JGB) yields to worries that the U.S. Federal Reserve could taper the pace of quantitative easing in the next few months, Japanese stocks still remain the world’s best performers, up over 40 percent year to date.

(Read More: Perfect Storm Sparks Massive Nikkei Sell-Off)

According to Dietze concerns that rising Japanese sovereign bond yields will drive investors out of equities and into government debt are still premature.

“One percent [JGB yield] does not strike the average investor as something to rotate out of stocks to grab for. We’ve never seen 1 percent here [in the U.S.], so it’s still ridiculously low. It’s premature to say the Japanese rally is finished,” he said.

The JGB yields rose to their highest level in a year on Thursday at 1 percent, prompting the Bank of Japan to hold true to its promise of taking action to stabilize an incredibly volatile bond market.

(Read More: Japan Bond Yields Spike Again- 10-Year Now at 1%)

Tai Hui, regional head of research, Asia at Standard Chartered Bank estimates that institutional investors may be attracted back into the government bond market, when 10-year JGB yields reach levels of around 1.3-1.5 percent.

Pace of gains could slow

Some strategists, however, warn that exuberant gains seen in the Japanese market since last November – when Prime Minister Shinzo Abe first started talking about the need for radical monetary and fiscal policies to reignite the economy – could slow in the months ahead.

(Read More: Huge Japan Stimulus Still Not Enough: Kyle Bass)

“Returns going forward are going to be a lot more modest than we have seen over the past six months,” said Malcolm Wood, head of investment strategy at Morgan Stanley Wealth Management.

Damon Vickers, managing director and chief investment officer at brokerage Damon Vickers & Co shared a similar view: “I don’t think that the Japanese rally is over with but we’re probably going to pause in here.”

– By CNBC’s Ansuya Harjani

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kids turn to Twitter, shun Facebook ‘drama’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Teenage use of Twitter has grown significantly, a new report into social media networks shows, while Facebook is losing market share to its quick-messaging rival.

Research from the think tank Pew Research Center revealed that 24 percent of online teens use Twitter now, up from 16 percent in 2011.

Of the 802 teens aged 12-17 that were surveyed by Pew, 80 percent said that they used social networking sites and one in four online teens are using Twitter, a social network previously perceived as dominated by adults.

Conversely, the study by the non-partisan research group reported that teens have become fed up with Facebook, with focus group discussions showing teens’ waning enthusiasm for Facebook.

“Teens are now migrating to Twitter in growing numbers, often as a supplement to their Facebook use,” Pew reported.

“Twitter draws a far smaller crowd than Facebook for teens, but its use is rising. One in four online teens uses Twitter in some way. While overall use of social networking sites among teens has hovered around 80 percent,Twitter grew in popularity,” the Pew report said.

When teens were first asked about their Twitter use in 2009 only nine percent used it, showing the draw Twitter has achieved as its older rival Facebook starts to “annoy” its young adherents.

Citing the “drama,” stress of managing their online reputation on the network and annoyance when their Facebook friends “share inane details” about their everyday lives, though many are reluctant to leave the network, the study found.

“While Facebook is still deeply integrated in teens’ everyday lives, it is sometimes seen as a utility and an obligation rather than an exciting new platform that teens can claim as their own,” the report added. “Nevertheless, the site is still where a large amount of socializing takes place, and teens feel they need to stay on Facebook in order to not miss out.”

Concerns over social media’s access and use of private data by businesses and advertisers grew among the parents surveyed, with 81 percent of parents being “very” or “somewhat” concerned, and 46 percent reporting they are “very concerned,” about how much advertisers could learn about their child’s online activities.

Out of the teens, only nine percent said they are “very” concerned about third party access to their data.

-By CNBC`s Holly Ellyatt, follow her on Twitter @HollyEllyatt

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Perfect storm sparks massive Nikkei sell-off

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A perfect storm of yen strength, a spike in Japanese government bond yields and new evidence of weakness in China`s economy were behind a major sell-off Thursday in Japan`s equity markets, said experts.

The benchmark Nikkei (Nihon Kenzai Shinbun: .N225-JP)225 closed down 7.3 percent in a session that saw it rise 2 percent in early trade only to reverse direction and fall sharply. The broader Topix finished 6.8 percent lower.

“Almost everything went wrong during the day – the bond market had a bit of a crash, China PMI data, and the yen is stronger. The market is really overheated, all it`s looking for is a trigger,” Nicholas Smith, Japan strategist at CLSA told CNBC.

Following the sell-off in US Treasurys overnight, Japan government bond (JGB) prices dived, forcing the yield on the 10-year JGB to 1 percent earlier in the day – the highest level in a year – spooking investors.

Yields of JGBs, which have been extremely volatile in recent weeks, have risen substantially from a record low of 0.315 percent hit on April 5, a day after the Bank of Japan announced bold easing measures.

Downside in the market was also driven by the fall in dollar/yen (Exchange: JPY=) – which slid below the 103 level to as low as 101.8 in the Asian trading session as foreign investors locked in profits on their long positions in the currency pair.

The yen holds an inverse correlation with the Nikkei as strength in the currency is seen as negative for the market that has a heavy concentration of exporters.

“It seems like the move lower in dollar-yen has encouraged some profit taking on the Nikkei. Any signs of strain will lead to fear that the correction is beginning, leading investors to lock in gains,” said Stan Shamu, market strategist at trading firm IG Markets.

Disappointing economic data out of the world`s second largest economy, China, was also a driver behind the sell-off, said strategists.

The flash HSBC Purchasing Manager`s Index (PMI) for May that was released on Thursday slipped to 49.6, falling under the key 50 level, which divides expansion from contraction, for the first since October.

The unexpected contraction in factory activity in May has heightened the risk of a further slowdown in the second quarter, said economists.

Liz Ann Sonders, chief investment strategist at investment services firm Charles Schwab, noted the rapid decline in Japanese stocks could be also result of “fast money” exiting the market.

“You`ve had a tremendous amount of really fast money go into that trade – short the yen long the Nikkei – momentum chasing money,” Sonders said.

“We may just be seeing a drain of that fast money,” she added.

Foreign investors have played a central role in driving gains in Japanese equities this year, pumping over $60 billion into the market as of the end of April.

Remarks by Federal Reserve Chairman Ben Bernanke to U.S. Congress that raised concerns there could be a pullback in the central bank`s bond buying program led to an overall decline in Asian equities .

According to independent technical strategist Daryl Gupp y, the sharp move lower in the Nikkei is a retreat from the historical resistance at around 14,580.

The move was not unexpected, he said, noting that the market will see support near 13,360.

“Look for consolidation patterns. A fall to 13,400 remains consistent with the long term up trend line,” he said.

Smith of CLSA says the market will likely stabilize soon as long as the Bank of Japan (BOJ) is able to successfully calm turbulence in the bond market.

“Assuming the BOJ can get its act together and bring yields down in a stable manner, and the yen stays around 102-103, then all we need is for the market to take some heat out. Today`s [Thursday`s] move gives it a chance.”

The BOJ conducted a market operation, offering to buy $1.1 billion worth of one-year Japanese bonds, in response to excessive volatility in the market on Thursday.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bottom line on Singapore GDP: Curb your enthusiasm

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Singapore`s economy may have grown unexpectedly in the first quarter of the year but the manufacturing sector remains weak and that`s not a great sign for the export-dependent economy, analysts say.

Data on Thursday showed the Southeast Asian city state grew 1.8 percent in the first three months of the year compared with the previous quarter.

That was much better than an advanced estimate of the gross domestic product (GDP) data released last month that showed Singapore contracted 1.4 percent in the first quarter or expectations for a contraction of around 1.1 percent. A surge in financial services was cited as reason for the unexpected upward revision.

“Admittedly, quarter one GDP turning from a contraction [flash estimate] to an expansion in the revisions is significant insofar that the chances of a `technical recession` are reduced,” wrote analysts at Mizuho Corporate Bank, referring to two quarters of contracting economic growth which put a country in a technical recession.

“But equally, the big picture has not changed so much that it warrants a celebration. In a nutshell, upward quarter one revisions were almost entirely due to better than expected service sector performance whereas manufacturing fared worse than estimated,” they added.

Activity in the manufacturing sector , which accounts for roughly 20 percent of Singapore`s GDP, contracted 12.3 percent in the first quarter, the breakdown of Thursday`s data showed.

Singapore, like most of its Asian neighbors has been hurt by weak demand for its exports, as Europe`s economy remains in recession and regional heavyweight, China, shows signs of sluggish growth.

“If you look at consensus expectation, most people were going for a negative number, so the data was a surprise,” Kristy Fong, investment manager at Aberdeen Asset Management told CNBC`s “Cash Flow.” “But there is [global] slowdown taking place and Singapore is exposed to that.”

Asia Vulnerable

Growth data released over the past week highlight that Asia remains vulnerable to weak overseas demand for exports.

Thailand`s economy contracted by a bigger-than-expected 2.2 percent in the first quarter from the previous one, while Malaysia`s economy grew 4.1 percent in the first quarter from a year earlier – its slowest pace in more than three years.

Barclays analysts said they did not expect the boost from the financial services sector to Singapore`s GDP in the first quarter to last.

“We do not think the exceptionally fast pace of growth in financial services activity can be sustained through the year,” they said in a note. “The Singapore stock market continued to rise in April and May, buoyed by improved sentiment on the back of fresh monetary stimulus in advanced economies, but the global economic recovery remains fragile and downside risks remain that could dampen sentiment.”

Singapore`s stock market (FTSE International: .FTSTI-GB) was down 0.5 percent on Thursday, in line with broader losses in Asian equities.

Following the release of the GDP data, Singapore`s Ministry of Trade and Industry reiterated its forecast of 1 to 3 percent growth this year.

Analysts at Mizuho said the fact that the government did not change its 2013 GDP forecast was another sign that the unexpected first-quarter GDP surprise did not change the overall outlook for the economy or monetary policy.

– By CNBC.Com`s Dhara Ranasinghe, Follow her on Twitter: @DharaCNBC

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Teflon Dimon, unflappable Cook; CEOs on a Roll

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The trials and triumphs of corporate chieftains are daily blood sport here at CNBC. These days, CEOs seem to be on a winning streak.

Jamie Dimon, CEO and chairman of JPMorgan Chase, this week successfully fended off a shareholder attempt to change that title by splitting his roles.

“I was so thrilled to see the results,” said Peter May , president and founding partner of Trian Fund Management, referring to the final tally of the vote; just 32% of shareholders voted in favor of redefining Dimon`s job. “For him to lose the vote would have been a vote of no confidence no matter what people said.”

Meanwhile, Apple chief Tim Cook calmly rebutted insinuations by a Senate panel that his company was dodging taxes by simply pointing out Congress was responsible for the law. “He looked sterling,” said Jeffrey Sonnenfeld of the Yale School of Management. “He was able to defend himself as a great corporate statesperson.”

And Marissa Mayer got a generally good response for Yahoo`s deal to take over Tumblr. Sure, Wall Street had some questions about how the blogging site will ultimately make money for the Internet oldie, but the sense was hey, at least the Yahoo CEO was doing something.

“She`s following the right script,” said Mark Mahaney of RBC Capital Markets.

Of course, the tide can turn quickly. Dimon could find another Whale in the closet. Apple is only as good as its next i-Thingy. And Mayer`s honeymoon will eventually end. Indeed, it wasn`t so long ago that JCPenney`s Ron Johnson flamed out.

But for now, high-profile CEOs are on a roll.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow